A student walks across the University of Michigan campus in Ann Arbor in 2011. / JARRAD HENDERSON/Detroit Free Press

Detroit Free Press Washington Staff

WASHINGTON – Research officials at the University of Michigan are preparing themselves for what could be a big cut in funding – up to $40 million this year – should the so-called sequester in the nation’s capital go through and slow the flow of federal research dollars.

As the Free Press reported in December, U-M is at or near the top in terms of research spending by U.S. institutions of higher education. In the last fiscal year, only John Hopkins University in Baltimore spent more on research, and in terms of spending federal research dollars only Hopkins and the University of Washington spent more than the $820-million U-M did.

U-M Vice President for Research Stephen Forrest told the Board of Regents today that the deep, across the board cuts set to start next Friday – the so-called sequester – could could slash those research budgets, hurting graduates students and scientists whose jobs depend on that funding. In turn, the drop in research could hurt the country’s ability to complete globally, Forrest said.

“We live in a global economy with a growing number of strong international competitors,” he said. “If we pull back now from investing in our future, we will lose ground that will be difficult, if not impossible, to regain. It would be a mistake.”

Federal funding provides 62% of U-M’s research budget, which totaled $1.27 billion in the fiscal year that ended last June.

A Democratic report in Washington recently said that under sequestration, the National Science Foundation would see its funding cut by $375-million between now and the end of September, resulting in “nearly 1,000 fewer research grants, impacting nearly 12,000 individuals supported by NSF, including professors, graduate students and undergraduates.” It also said it would lead to the termination of about $35 million in contracts and agreements.

In terms of research spending among Michigan institutions, Michigan State University was second last year with $431 million and Wayne State University was third at $255 million.